• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days How Far Have We Really Gotten With Alternative Energy
  • 7 hours The United States produced more crude oil than any nation, at any time.
  • 1 day China deletes leaked stats showing plunging birth rate for 2023
  • 10 hours The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 5 days Bad news for e-cars keeps coming
Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Bargain Hunters Boost Oil Prices Ahead Of Fed Meeting

  • Oil prices were higher on Tuesday morning as bargain hunters moved in, with WTI trading at $67.86 and Brent changing hands at $72.83.
  • Oil prices ended trade on Monday with another loss as demand concerns continue to dominate markets due to doubts over China’s economic recovery.
  • The Fed meeting begins today and most analysts expect a pause in rate hikes, a move that might stop the recent collapse in oil prices at least temporarily.
Oil prices

Crude oil prices climbed early on Tuesday morning after ending trade on Monday with yet another loss, driven by demand concern.

As the latest Fed meeting begins today, however, eyes will be on the U.S., with most analysts expecting the central bank to announce a pause for rate hikes.

That would have a positive effect on prices although how durable that effect would be in the context of continued doubts about China’s rate of economic recovery is anyone’s guess.

At the time of writing, Brent crude was climbing toward $73 per barrel, with West Texas Intermediate at closing in on $68 per barrel, both up by more than a percentage point since yesterday’s close.

West Texas Intermediate had shed 7% over the last three trading days, Bloomberg reported, dampened by demand concerns but also by the slowdown in the U.S. economy and sanction-resilient Russian crude exports.

Yet the report also noted that U.S. sour crude prices had strengthened, reaching a one-year high as the federal government signaled it may finally be ready to begin refilling the strategic petroleum reserve.

The government announced the purchase of 3 million barrels of crude last week alongside plans for the purchase of another 3 million later in the year.

"These 3 million barrels are being purchased for an average price of about $73 per barrel, lower than the average of about $95 per barrel that SPR crude was sold for in 2022, securing a good deal for taxpayers," the Department of Energy said, as quoted by Reuters, last week.

Even so, oil prices have generally remained subdued, whetting bargain-hunting appetites among traders, per Reuters.

"Some investors looked for bargains after the previous day's heavy selling while others held back their positions with speculation that Saudi Arabia may cut production additionally," a Nomura Securities economist told the news outlet.

ADVERTISEMENT

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News